Negotiation Edition
A MONTHLY DIGEST TO INFORM AND ENLIGHTEN MEETING AND EVENT PLANNERS MARCH 2007 Edition
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Deciding objectives and avoiding the pitfalls of RFPs BY JYL ASHTON CUNNINGHAM
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ost planners go through the RFP (Request for Proposal) process with hotels several times a year and many are seasoned experts in the process. This article is intended as a validation as to why RFPs are used and to better understand the objectives and potential pitfalls of negotiating with hotels, sometimes several years in advance. In an effort to provide continuity in the negotiation process, site inspections and hotel contracts will be addressed in future issues of The Planner. Unless you are intimately knowledgeable about the city you are planning on visiting, why not save considerable time and effort by forwarding the RFP to the local convention and/or tourism bureau. They in turn will distribute the information to all the hotels within a pre-determined geographical radius and will collect all the responses on your behalf. This is particularly important when the RFPs are monitored or even judged by company procurement departments, as working through the CVB potentially avoids favouritism towards the planner from any hotel.
Ethics come first First and foremost, when embarking on an hotel RFP, be ethical in your selection. Don’t go through the process if there is an existing relationship with a particular hotel chain that will override your recommendations. That just wastes everyone’s time. Similar ethics apply when conducting a site inspection of several hotels.
Since usually only one will get the business, try spreading yourself as thin as possible by dividing offers of complimentary accommodation, meals, etc. as fairly as possible between all the properties. Again, the CVB can help you determine your agenda. Some companies prefer to pay in full for a site visit in order to remain completely unbiased in their decision making. When reporting back to the client or employer on the suitability of a property, state the facts and make tactical recommendations. It is important to remain neutral and offer your expertise without putting down any hotel in particular. You never know when that same property will fulfill your every requirement for future events, so always keep an open mind. Be clear and concise about your objectives and on the criteria on which the RFP will be judged. For example, outline bottom line items, such as cost of accommodation, cost of meeting room rental and the ability to stay within budget on food and beverage. As well though, meeting room size, location, accessibility, room upgrades, and proximity to exhibition halls or nightlife should all be considered in the RFP. Give an accurate and honest demographic of the group you are planning to bring to the property. Remember that just as you are vetting the hotel, they in turn like to attract business that they can most suitably accommodate, and appreciate knowing in advance of any potential controversies, special needs or security measures that need to be taken into consideration.
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